Mulberry luxury goods maker sees profit treble. Image copyright Getty Images Luxury goods company Mulberry sees profits treble following switch to focus on more affordable products.
The company, best known for its leather handbags, saw annual pre-tax profits in the year to 31 March jump from £1.9m to £6.2m. Sales rose by 5% to £155.9m. Mulberry has struggled in recent years as a result of the company's failed attempt to compete with higher end brands, such as Prada and Fendi. Chief executive Thierry Andretta said it had made "significant progress". Mulberry has spent the past two years introducing new designs and bringing in lower priced bags in the £500 to £800 range.
This followed ill-fated efforts to compete at the top end of the market offering bags priced at £1,000 and more. However, the shake-up in strategy appears to be working. Mr Andretta said: "We have built a strong foundation for future growth as a result of the investment made in product design and development as well as our omni-channel infrastructure. Prada seeks younger customers in bid for growth. Image copyright AP Italian luxury fashion group Prada has predicted a return to growth as it seeks to connect with younger customers through online sales and flexible pricing.
First half profits fell 25% to €330m (£282m) due partly to falling demand in China and Italy. But Prada said it saw 2016 as "a turning point. " It has been reviewing prices, product variety and online marketing to appeal to more customers. Revenue fell 15% to €1.55bn compared to this time last year and in April Prada announced its lowest profits in five years. It was previously criticised for opening too many new stores and failing to invest enough online. Prada said it was on track with plans to double its e-commerce sales over the next two years by increasing the number of products it offered online, particularly shoes.
It will also expand its social media activities so it can raise its profile among "the 'always connected' millennials," referring to the 20s -30s age group. Image copyright Getty Images. Burberry New London Fashion Week Home. Picture credit: Burberry/Mario Testino 16 August 2016 Katie Berrington BURBERRY is bidding farewell to its Kensington Gardens base for the forthcoming show on September 19, the brand has revealed this morning.
Moving closer to the London Fashion Week hub in Soho's Brewer Street Car Park - where the official show space has been located for the past two seasons - the luxury British brand's new venue, named "Makers House", is situated at 1 Manette Street. Related Show The location is not the only change that Burberry is undergoing this season. The news comes as Burberry unveils images from its latest campaign, shot against the impressive backdrop of Liverpool's Walker Art Gallery by Mario Testino and featuring Jean Campbell, Cavan McCarthy and Alex Dragulele. Also launching on the evening of the show will be the label's partnership with homewares and lifestyle brand The New Craftsmen. Louis Vuitton Targets Middle-Income Shoppers With Perfume Launch.
PARIS, France — Louis Vuitton has launched its first perfume range since the founding merger of its parent LVMH in 1987, targeting middle-income shoppers amid a downturn in luxury spending.
This week's launch is an important step for the French brand as it tries to strike the delicate balance between increasing its number of more affordable goods while retaining its cachet. Until now, shoppers on more modest incomes have only been catered for by Louis Vuitton's key chains and very small leather goods, costing around €200-300 a piece.
But the brand needs to boost sales growth after a sharp slowdown in the past three years, and with little sign of an industry recovery as security fears and geo-political uncertainty hit the tourism flows vital for luxury brands. Louis Vuitton's collection of seven perfumes, with names including "turbulences" and "matiere noire" or "dark matter," are on sale for around €200 (£168) for a 100 ml bottle. By Pascale Denis and Astrid Wendlandt; editor: Mark Potter. Getting consumers to buy luxury products on Amazon.com. NEW YORK, United States — In 2012, Amazon debuted its first fashion advertisement.
It was reminiscent of an American Vogue spread and featured a dolled up Chanel Iman in a taut, alert pose. Printed across her shins was the phrase “Smart is Beautiful,” a tagline still employed by the glossiest division of the e-commerce and cloud computing giant, which generated combined revenues of $107 billion in 2015. Over the past five years, Amazon has made a series of moves aimed at the fashion market that go far beyond print advertising.
Luxury brands get tougher with counterfeiters — and Alibaba. Shutterstock/Everett Collection Luxury brands are getting more aggressive about taking suspected counterfeiters to court.
After years of debate in the luxury industry about how to publicly tackle counterfeit goods, a growing number of high-end names from Gucci to Moncler and Alexander Wang are suing sellers of fakes, both in China and the West. The legal action comes as brands grapple with an explosion of fake goods on e-commerce and social-media platforms. Fashion brand Alexander Wang, which sued the owners of 459 websites believed to be selling counterfeit handbags, footwear and clothing last year, won a $90 million judgement this month in a New York district court.
The court froze the websites and transferred their domain names — many of which are believed to originate in China — to the designer. It can be hard to find out who is selling the counterfeit goods, and therefore who to sue, so the brands sometimes hire investigators and lawyers. A version of this article appeared on wsj.com.